Context: The Goods and Services Tax (GST )compensation issue strengthens the necessity for a new system between sovereign and sub-sovereign entities
Promises of GST
Abdication of responsibility by the Centre: Using the Force Majeure clause, responsibility of making up for the shortfall in 14% growth in GST revenues to the states, is being abdicated by the Centre due to:
Arguments for Centre’s Responsibility:
Way Forward: Design needs a radical overhaul: The Grand Bargain 2.0